PCIT order u/s 119(2)(b) set aside and delay in filing ITR condoned as per CBDT Circular

High Court set-aside order of PCIT u/s 119(2)(b) and condoned the delay in filing the returns due to genuine hardship as contemplated in the Circular. 

In a recent judgment, Karnataka High Court set-aside the order passed by the PCIT under Section 119(2)(b) and condone the delay in filing the returns due to genuine hardship as contemplated in CBDT Circular.

ABCAUS Case Law Citation:
4545 (2025) (05) abcaus.in HC

In the instant case, the petitioner sought quashing of the impugned order passed by the Principal Commissioner of Income Tax (PCIT) whereby the application filed by the petitioner under Section 119(2)(b) seeking condonation of delay of 29 days in filing the income tax returns in relation to the Assessment Year 2023-24 was rejected.

The Hon’ble High Court observed that in relation to the relevant Assessment Year, the petitioner had filed returns after the prescribed due dates along with the application seeking condonation of delay of 29 days in filing the revised  returns inter alia contending that the petitioners had to file revised returns of income since the petitioner had failed to import TDS details while filing the original returns of income and owing to bonafide reasons, unavoidable circumstances and sufficient cause, the petitioner was not in a position to file the returns within the prescribed period. 

It was contended that the delay in filing the income tax returns was due to genuine hardship as contemplated in the Circular No. 9/2015 dated 09.06.2015 and as such, the PCIT committed an error in rejecting the application for condonation of delay filed by the petitioner under Section 119(2)(b) of the Income Tax Act, 1961 (the Act), which deserved to be set-aside.

The Hon’ble High Court noted that perusal of the impugned order passed under section 119(2)(b) indicated that the PCIT had adopted hyper technical approach in refusing to condone the delay without appreciating that the inability and omission on the part of the petitioner to file revised income tax returns within the prescribed period was due to oversight of the petitioner in not importing TDS details while filing the original returns of income and he could file the revised I.T. returns subsequent to expiry of the prescribed period.

The Hon’ble High Court opined that the PCIT failed to appreciate that the petitioner could not file his revised I.T. returns within the prescribed period on account of bonafide reasons, unavoidable circumstances and sufficient cause, which clearly constituted genuine hardship on the part of the petitioner/assessee as contemplated in the said Circular dated 09.06.2015 and failure to appreciate this, had resulted in erroneous conclusion warranting interference by this Court in the present petition.

Accordingly, the Hon’ble High Court for adopting a justiceoriented approach and having regard to valid and sufficient ground pleaded by the petitioner in support of his claim for condonation of delay, set aside the impugned order and condone the delay in filing the returns by the petitioner by allowing the application filed by the petitioner.

The PCIT along with Assessing Officer CPC and the jurisdictional ITO was directed to accept the revised returns submitted by the petitioner for the relevant Assessment Year. It was clarified that Income Tax Department will have liberty to verify the claim of the petitioner and proceed further in accordance with law.

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